Sep. 30, 2014, 10:34 AM
- The positive market reaction following Encana's deal for Athlon Energy and other recent transactions may put pressure on inventory short majors and other large-cap companies to pursue M&A activity to increase their quality inventory in the U.S. onshore market, according to a UBS report.
- UBS lists six top potential targets, some of which already are swirling in the rumor mill, including Pioneer Natural Resources (NYSE:PXD), with its own fracking fleet and huge Midland Basin play making it a very attractive but expensive target.
- The firm's other five top M&A candidates: COG, CXO, OAS, RRC, WLL.
Jul. 14, 2014, 2:21 PM
- Whiting Petroleum's (WLL +7.4%) $6B buyout of Kodiak Oil & Gas (KOG +5.1%) is renewing investor attention on independent energy firms with operations in the Bakken Shale, especially those significantly owned by hedge funds; Paulson & Co. is the single biggest owner of KOG stock, with just under 10% of shares outstanding as of the last filing date.
- While many of the largest Bakken producers are huge companies or parts of huge companies - Hess (NYSE:HES), EOG, Statoil (NYSE:STO), Marathon Oil (NYSE:MRO), XTO Energy (NYSE:XOM) - a few small and mid-cap independent players show hedge fund interest, CNBC's Brian Sullivan writes.
- The single biggest holder of Oasis Petroleum (OAS +0.5%) also is John Paulson's hedge fund, which owns 9.9M shares (~9.8% of shares outstanding), Jana Partners owns 16M-plus shares in QEP Resources (QEP +1.4%), and WPX Energy (WPX +1.1%) has substantial hedge fund ownership.
Sep. 20, 2013, 10:21 AM
- This month's deal by Oasis Petroleum (OAS +0.5%) in adding 161K acres in the Williston Basin gives the E&P company more real estate in the region relative to its $5.2B enterprise value than any similar-sized competitor, and Sterne Agee says it may lure takeover interest.
- The Bakken region, part of Williston, appeals to larger energy producers due to its proven resource potential and established infrastructure, Raymond James says: OAS has "a nice footprint of acreage. As you get closer to a top-five position in the Bakken... the international guys may want to come in.”
- OAS also offers an attractive valuation, trading at a lower P-E multiple than 71% of U.S. peers, Topeka Capital says.
Aug. 24, 2012, 8:48 AM
QEP Resources (QEP) is paying a rich valuation in its $1.4B purchase of North Dakota properties, which bodes well for other players in the region, an Imperial Capital analyst says. "This acquisition is a positive read-through to the pure play Bakken players, which we believe are takeout candidates," the firm says, listing OAS and TPLM as the most attractive candidates for a buyout deal.| Aug. 24, 2012, 8:48 AM | 2 Comments